Why phone lines are being redefined by VOIP Providers.

The phrase “phone line” is often used.

Even in an era when more and more businesses are starting to migrate away from them.  What is a phone line?  In essence, a phone line is a 150 year old technology that is slowly disappearing. 

Traditional Vs Cloud based phones

All the technology advances we have made, companies are still using a traditional phone line to conduct business.  Doesn’t make sense.

  Why have they lasted this long?  Well the main reason is because AT&T, Verizon and other large entities have only offered these services.  Over the last 5 years you have seen a real push for AT&T, Verizon and other Telecom companies to start to implement fiber services in their areas.  With this, the large telecom have spent millions of dollars with laying fiber optic cables in their territory

Fiber optic lines

Guess what, regular phone lines don’t work so well over fiber optic networks.  Too expensive.

.    Now, you have the larger telecom carriers pushing IP services such as VOIP and SIP trunking to their customer base.  They found it costs less to do then to maintain an old 175 year old network.  Two things have happened because of this.  One, is large telecom providers want you off the old analog network which regular phone lines operate on.  How do they do this? By increasing what a regular phone line costs from $50 a month to $175 per month.  AT&T’s regular phone line rate out of agreement is now $175.00 per month.  So if you have 8 phone lines you are now paying $1400.00 instead of the $400.00 you were used to.  The second thing that has come out of this is the migration to VOIP services.  Verizon, AT&T are steadily moving to become a IP transport company. They want to run everything over their fiber IP network.  If all the traffic is going to be IP anyway to you, why not just utilize a VOIP company and save money and get all the features you require to run you business.

If you are interested in learning more about VOIP services or would like a free consultation on VOIP services. Contact us, we are ready to help make the transition over to VOIP services.